Lithium-Ion Battery Recycling Market Size, By Chemistry, By Process, By Source, Growth forecast, 2025 - 2034

Lithium-Ion Battery Recycling Market Size

The global lithium-ion battery recycling market was valued at USD 7.2 billion in 2024 and is expected to grow from USD 8.7 billion in 2025 to USD 47 billion in 2034, at a CAGR of 20.6%, according to latest report published by Global Market Insights Inc.

• In the past four years, the lithium-ion battery recycling market has evolved from a niche environmental solution to an essential component of the global energy ecosystem. As reported by the International Energy Agency (IEA), there were over 40 million EVs globally as of 2023, a significant increase from 11 million in 2020. This surge creates an enormous volume of end-of-life batteries that require recycling. 
   
• Prior to 2020, lithium-ion recycling was primarily confined to extraction from consumer electronics and collection was largely smelting based and unsophisticated. Growing regulatory scrutiny, however, coupled with the expansion of battery gigafactories in China, the U.S., and Europe, has resulted in scalable, purposeful investment in extraction and recycling. With the 2023 revision of the EU Battery Directive, the recycling industry is strongly incentivized to increase the collection and recycling of EV batteries.  For example, the Directive mandates that by 2030, 90% of the lithium contained in recycled batteries must be recoverable. In the U.S., the Department of Energy is stimulating the development of closed loop battery recycling with the Battery Recycling Prize.
   
• Geopolitical context and resource consolidation continued to build recycling investments. Over 70% of the world’s cobalt refining is done in China, and over 50% of the world’s lithium processing occurs in a few Asia Pacific countries (source: USGS 2023). The demand for EV batteries skyrocketed and so did prices for raw materials. The price of lithium carbonate, for example, increased almost 500% between 2020 and 2022. This further accelerated recycling investments and for economic resiliency. There was a rush of commercial scale hydrometallurgy projects in Europe and North America from 2021 to 2024, especially for the NMC and LFP chemistries, to replace the pilot lines.
   
• At present pyrometallurgy accounts for almost 43% of the total processed material hydrometallurgy owing to the exclusive recovery of high quality primary cathodes. The automotive batteries, especially EV production scrap, account for over 70% of total recycled lithium-ion material. With the stabilization of second-life battery markets, active material recovery will likely surpass the disposal based recycling. This is a rapidly changing market, with recyclers maintaining and creating regional battery value chains, and diminishing dependence on primary raw material imports. This reinforces low carbon, circular manufacturing.
   

Lithium-Ion Battery Recycling Market Trends

• Expansion of EVs Prompting Surge in Recycling: The rapid pace of adopting electric vehicles globally drives the recycling of lithium-ion batteries. EV sales surpassed 14 million in 2023 (IEA) and the “end of life” batteries volume is rising. To recover more raw materials and minimize reliance on virgin extraction, recyclers and manufacturers have been closing the loops as in the case of Redwood Materials with Ford and Toyota.
   
• Hydrometallurgy Becoming the Preferred Recycling Method: Hydrometallurgy has overtaken pyrometallurgy as the recycling method of choice because of Hydrometallurgy’s superior recovery of lithium, cobalt and nickel.  Companies such as Li-Cycle and Umicore are increasing the capacity of their hydro plants to obtain cleaner and lower emission outputs. The revised Battery Regulation (2023) of the EU now rewards recyclers utilizing ≥90% recovery efficient processes which in turn fosters the preference for more investment for water-based technology as it is far more efficient than traditional smelting.
   
• Recycling Positioned Closely to Gigafactories: Hostile policies drive the domestication of entire battery value chains, forcing recyclers to position themselves alongside gigafactories. This is evidenced by the Glencore and Li-Cycle joint facility in Italy as well as Redwood’s Nevada plant located next to Tesla. This reduces logistical expenses, hastens recycling, and streamlines compliance to the EU Critical Raw Materials Act which is aimed at reduced import reliance.
   
• Black Mass Trade and Pre-Processing Transition: The focus has begun to shift toward the production of black mass—intermediate processing of mixed battery waste. Companies such as SK TES and Attero Recycling have begun to export black mass, particularly to South Korea, Belgium, and Germany. This trend allows smaller recyclers to circumvent full refining and provide output to large hydrometallurgical processors for the final metal recovery steps.
   

Lithium-Ion Battery Recycling Market Analysis

Based on Chemistry, the market is segmented into Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO), and others. Lithium Nickel Manganese Cobalt Oxide (NMC) segment was valued at USD 3.3 billion in 2024, and it is anticipated to expand with 21.1% CAGR during 2025-2034.
 

• The lithium-ion battery recycling market is undergoing a notable transition in the chemistry being processed, with NMC remaining predominant given its extensive presence in EV batteries. Nonetheless, LFP is quickly increasing its market share, largely spurred by the rise of budget EVs and energy storage systems, particularly in China and India. Demand for LCO, which is used in consumer electronics, is dwindling as newer, less cobalt-intensive batteries are introduced.
   
• Recyclers are upgrading their processes, driven by their need to recover lithium and iron in LFP, which are less valuable but high in abundance, in addition to focusing on the higher value retrieval of cobalt and nickel in NMC and LCO. Companies such as Umicore and Glencore are modifying their facilities to accommodate multiple battery chemistries for recycling. Innovativeness in battery designs will increase the visibility of the less utilized "Others" category, which includes NCA and new solid-state battery chemistries, by the end of the decade.
   

Based on Process, the lithium-ion battery recycling market is segmented into Pyrometallurgical, Hydrometallurgical, and Physical/Mechanical methods, with hydrometallurgy gaining traction for its higher recovery efficiency and lower emissions. Hydrometallurgical segment was largest and valued at USD 3.1 billion in 2024, and it is anticipated to expand to 20.9% of CAGR during 2025-2034, constituting 36.1% in overall market share.
 

• The landscape for lithium-ion battery recycling processes is also shifting quickly, with hydrometallurgical processes being adopted as the industry standard driven by higher efficiency and reduced emissions. Implementing these processes, which chemically treats water and other chemicals, enables the recovery of over 90% lithium, cobalt, and nickel. Companies like Li-Cycle, RecycLiCo, and Umicore are expanding their hydro-based plants in response to the market demand for cleaner and more precise resource recovery in alignment with ESG objectives.
   
• Historically, the core focus of process operations has been on pyrometallurgy. However, the fast-advanced mechanical pre-treatments, more specifically shredding and sorting, and black mass preparation, are motivating decentralized ‘spoke and hub’ models. These models support regional black mass processing followed by centralized hydro-refining, used by companies Attero and SK TES. This enables infusion of multiple chemistries while techno-economic feasibility is maintained. Attractor SK TES actively uses these models geared towards capital efficiency.
   

In source segment, lithium-ion battery recycling market from automotive segment was valued at USD 5.1 billion in 2024, and it is anticipated to expand to 20.5% of CAGR during 2025-2034, constituting 71.2% in overall market share.
 

• Most refining of lithium-ion batteries comes from the automotive industry, specifically from the end-of-life batteries of passenger electric vehicles, batteries from commercial vehicles, and gigafactories, which are generating increasing volumes of battery production scrap. With the significant production of electric vehicles expected across major global markets, spent and defective batteries from automotive vehicles are expected to be plentiful and readily available making this sector very attractive to recyclers.
   
• In comparison, the non-automotive segment has a greater diversity of applications, and recycling of the energy storage batteries integrated into consumer electronics, micromobility, and stationary energy systems is very fragmented and more challenging to capture and disassemble. Fortunately, regulation, producer responsibility in the EU and Japan, and the expected growth of black mass processing in nonautomotive sources, especially in Asia, and emerging markets will provide relief in this regard.
   

• North America will grow from USD 1.5 billion in 2024 to USD 8.5 billion by 2034. This growth is largely due to U.S. government incentives and increases in domestic electric vehicle and battery manufacturing. 
   
• U.S. lithium-ion battery recycling market share predominantly valued at USD 1.21 billion in 2024. Major companies Redwood Materials and Li-Cycle are building large-scale recycling hubs and the U.S. Infrastructure Investment and Jobs Act has provided funding focus to battery circularity 
   
• Tax credits at state and federal levels are providing the necessary incentives for large recycling projects to be developed close to U.S. gigafactories, which help commercially recover lithium, cobalt, and nickel. 
   
• Asia Pacific becomes the highest global EV adopter providing for substantial growth in the region. Expectations project the 2024 to 2034 market growth from USD 3 billion to USD 21.1 billion, primarily due to EV, battery manufacturing and strong recycling policies.
   
• China has the largest market in the region with USD 1.43 billion in 2024 due to government and private investment in recycling mandates and infrastructure. Closed loop systems, of which Ganfeng Lithium is a leading example, are rapidly expanding.
   
• China's 2023 EV fleet of 14 million electric vehicles (IEA) provides sustainable battery recycling with long term recovery potential from battery waste. Hydrometallurgical recycling provides for rapidly scalable investment in the recovery of battery waste to meet demand.
   
• From 2024 to 2034, Europe will expand its market value from USD 1.8 billion to USD 11.1 billion, owing to regulations on the circular economy, the battery passport frameworks, and the EU Critical Raw Materials Act. This growth will allow the European Union to maintain its position as the second-largest market and fastest growing region in terms of CAGR.
   
• Among all the EU nations, Germany will maintain its market leadership position, anticipated to reach USD 345.8 Million in 2024. Defensive capital and recycling at domestic batteries contribute to Germany’s growth owing to high EV battery sales. Companies such as Umicore and Volkswagen are assimilating the recovered batteries into the cell pouches of newly manufactured batteries.
   
• Germany has the most enforcement on EU Battery Regulation (2023) which demands 90% lithium recovery by the year 2030. This motivates infrastructure growth and public-private partnerships on tech all across the EU.
   
• Forecasts suggest the value for market growth in Latin America will rise from USD 520.3 million in 2024 to USD 2.9 billion by 2034. This growth will result from new urban e-mobility and battery recovery regulations in Brazil and Chile.
   
• In 2024, Brazil, leading in e-mobility and battery recycling, accounted for USD 127.6 million. Early-stage mechanical pre-treatment and black mass exports to Asia are significant contributors to Brazil’s value.
   
• Original equipment manufacturers (OEMs) such as BYD, in cooperation with local recyclers, are using modular infrastructure. This approach, backed by the government, is augmenting inter-regional trade and decreasing landfill use.
   
• Middle East & Africa (MEA) is also one of the growing regions, increasing from USD 478.7 million in 2024 to USD 3.4 billion in 2034, backed by electric mobility pilots, solar battery storage recycling, and national material recovery plans.
   
• Vision 2030 and Saudi PIF (Public Investment Fund) EV (electric vehicle) purchases propel the 2024 MEA growth leadership of Saudi Arabia (USD 116.2 million).
   
• Clean-tech lithium battery processing and surrounding energy circularity is expanding and growing due to the international recycler collaborations and new economic zones. These are developing into energy circularity platforms.
   

Lithium-Ion Battery Recycling Market Share

• Redwood Materials, Umicore, Attero Recycling, Glencore, Ganfeng Lithium accounted for market share of 61% of the global lithium-ion battery recycling industry in 2024.
   
• Redwood Materials is the first company to conduct lithium-ion battery recycling and has built strong vertical integration with electric vehicle partnerships and localization recycling to proximity to giga factories. Its partnerships with major automakers, including Ford and Tesla, make it possible for closed-loop recycling to retrieve high-value constituents. The installation of modular hydrometallurgical facilities allows for scalable operations, and for being sustainable, Redwood has become the leading supplier of made-in America battery materials for North America.
   
• European giant Umicore follows Closely, Known for and with his cobalt and nickel recovering and rechargeable cum battery metals cycle refining. The company has Advanced re hydrometallurgical and pyrometallurgical systems especially in Belgium and Germany, Strong OEM automotive industry relations and for end-of-life battery supply. Early focus on cobalt and nickel recovering helps him impact valuable high-energy battery chemistry NMC.
   
• Li-Cycle and Glencore via decentralized “spoke and hub” networks, specifically for black mass, Li-Cycle and Glencore take a dual approach. Ganfeng Lithium, on the other hand, built in the China battery manufacturing and recycling integrated closed operations and he is the leading in Asia. These and the players focus on strategic/ICT advanced global regulatory supply chain and high environmental recovery rates restorative to the ecosystem.
   

Lithium-Ion Battery Recycling Market Companies

The major players operating in lithium-ion battery recycling industry include:

• Redwood Materials
• Umicore
• Attero Recycling
• Glencore
• Ganfeng Lithium
   
• Redwood Materials: This company has a 16% share of the lithium-ion battery recycling market and is the leader of the recycling battery market. The U.S. company is creating closed-loop systems recycling lithium-ion batteries and is partnered with Ford, Toyota, and Panasonic. Redwood is expanding its Nevada facility, which is expanding the lithium, cobalt, and nickel hydrometallurgical battery recycling. As of 2024, Redwood is investing $1 billion into building a 2nd domestic recycling hub in South Carolina.
   
• Umicore: With 14% of the market share, Umicore is the leader in battery recycling in Belgium and Germany and implemented advanced technology in their recycling facilities. They utilize pyrometallurgy and hydrometallurgical battery recycling in addition to losing and nickel recycling for EV batteries, they also recycle a significant amount of cobalt. Umicore has partnered with the Automotive Cells Company (ACC) in the recycling of batteries and in the production of new cells in Europe and in doing so, they strengthen their place in the Europe circular economy. 
   
• Attero Recycling: With 12% of the market share, company is gaining attention for its “spoke and hub” recycling model. It decentralizes pre-processing into local spokes that feed black mass to a central refining hub. This model is the basis of a joint venture with Glencore to create a battery recycling ‘mega hub’ in Italy. The firm has hydrometallurgy practices that have very high recovery rates and eco-friendly practices.
   
• Glencore: It accounts for 10% of overall market share. Glencore manages battery materials flows leveraging strengths within their trading and global integrated network as a commodities powerhouse. It further integrates its trading strengths with investments in mechanical and pyro-recycling assets. Glencore’s recent Italy initiative with Li-Cycle combines logistical scale with sustainable processing in a bid to make Glencore a European supply chain leader for recovered lithium, cobalt, and nickel.
   
• Ganfeng Lithium: Ganfeng Lithium captures 9% of the market and is Ganfeng’s leader for integrated operations spanning across battery manufacturing and battery recycling. predominately For the Asia pacific region, Ganfeng recycles spent EV battery in China and refines lithium for EV battery manufacturers. To solidify its market position, Ganfeng expanded its recycling facility in Jiangxi for the 2024 operational year by 35% and targeted LFP and solid state batteries.  The closed loop system for lithium recycling and refined lithium supply secured Ganfeng’s lithium supply for domestic markets.
   

Lithium-Ion Battery Recycling Industry News

• In April 2024, Redwood Materials announced plans for a second lithium-ion battery recycling facility in South Carolina, a USD 1 billion project, with intentions to directly serve U.S.-based EV and battery makers with lithium, nickel, and cobalt and other recoverable materials.
   
• On October 2023 saw the consolidation of battery recycling prospects for the EU with Li-Cycle and Glencore's newly established joint recycling facility in Italy. It is projected to handle and recover critical materials from 50,000 tons of black mass per year.
   
• On March 2023, the EU's newly established battery recycling regulations intensified Umicore's partnership with ACC to an EU vertically integrated recycling and 90% lithium and cobalt recovery supply deal for recycled battery materials distributed from Umicore's European facilities.
   

The lithium-ion battery recycling market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Chemistry

• Lithium Nickel Manganese Cobalt Oxide (NMC)
• Lithium Iron Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Others

Market, By Process

• Pyrometallurgical
• Hydrometallurgical
• Physical/Mechanical

Market, By Source

• Automotive
  • Commercial vehicles (electric buses, vans)
  • Off-road electric vehicles (construction, mining fleets)
  • Battery manufacturing scrap (giga factories and rejects)
  • Passenger electric vehicles (BEVs and PHEVs)
• Non-Automotive
  • Power tools and industrial electronics (cordless drills, UPS units)
  • Stationary energy storage systems (grid and residential)
  • Micromobility devices (e-scooters, bikes, drones)
  • Consumer electronics (smartphones, laptops, tablets)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East and Africa